2020 is the first year of 5G scale construction, and the fundamentals of the industry are developing steadily. However, affected by the new crown epidemic and Sino-US friction, the communications index is moving forward in twists and turns. Looking forward to 2021, we believe that the wave of digital transformation will add impetus to the development of the industry. In addition, as 5G coverage deepens, downstream innovative application scenarios may emerge. In terms of segmentation strategy, we are optimistic about IT infrastructure, optical modules, IDC, Internet of Things, military informatization, etc. In addition, new application scenarios such as edge computing and 5G private networks may welcome development opportunities. The first year of 5G scale construction 2020 is the first year of 5G scale construction for the communications industry.
The penetration rate of 5G users has increased rapidly. At the same time, the global outbreak of the new crown epidemic, Sino-US technology and trade frictions have also brought temporary uncertainty to the development of the industry.
Innovation, self-reliance and self-reliance have become the keywords of the year. In general, we believe that in terms of the industry, the annual capital expenditure of operators in 2020 is expected to increase by 12% year-on-year, 5G construction is steadily advancing, and the epidemic has driven enterprises to accelerate online and further promote the development of cloud computing, and the industry’s endogenous performance is stable; and the stock market In China, the Communication (Shenwan) Index fell 0.24% from the beginning of the year (as of November 13, 2020), while the ChiNext Index rose by 50.54% during the same period. External variables (Sino-US frictions, etc.) have a phased trend in the Communication (Shenwan) Index Played a greater role. New opportunities for digital transformation and technological innovation
The digital economy is becoming an important engine for my country's economic and social development. The value-added scale of my country's digital economy has expanded from 2.6 trillion yuan in 2005 to 35.8 trillion yuan in 2019. Since the epidemic, digital transformation has played a key role in the recovery of production and operation of enterprises.
We believe that companies that have made rapid progress in digital transformation have a strong ability to deal with risks, and the trend of digital transformation will be strengthened after the impact of the epidemic, adding new impetus to the development of the communications industry. In terms of industrial policy, the central government once again clearly defined technological self-reliance as the strategic support of national development in the 14th Five-Year Plan. We believe that industrial upgrading and independent control will be important directions for technological development. New infrastructure represented by 5G and cloud computing Construction will continue to be the focus, and domestic demand as a strategic cornerstone will further drive information consumption.